Supreme Court reinstates insolvency proceedings against Byju's, stays settlement with BCCI

Byju's insolvency: The Supreme Court on Wednesday revived insolvency proceedings against edtech giant Byju's, overturning a previous tribunal decision. This ruling is a win for US lenders who claim the company owes them $1 billion.

The decision deals a blow to Byju Raveendran, the company's founder, who had recently regained control of the startup, once valued at $22 billion. Byju's has yet to comment on the court's latest order.

The insolvency proceedings originally began after the Board of Control for Cricket in India (BCCI) filed a complaint, citing unpaid sponsorship fees. Although the two parties reached a settlement, leading to an appeals tribunal halting the insolvency process, the Supreme Court's ruling nullifies that resolution.

With the reinstatement of the insolvency case, control of Byju's is likely to return to a court-appointed insolvency administrator. This decision follows the Supreme Court's agreement to hear an appeal from Glas Trust, a US-based entity representing certain lenders of a Byju's group company. The appeal challenges the prior order that dismissed the insolvency proceedings, bringing the company's financial struggles back into the spotlight.